In the age of downloadable last will and testament kits and templates, estate planning can feel like a quick administrative task. But the risks of going it alone often only become clear when it’s too late.
A will that’s not legally valid or doesn’t reflect complex realities can end up causing more harm than good, warns Madelein Steenkamp, a fiduciary and tax specialist at Sanlam Private Wealth.
“The consequences of a poorly considered, DIY estate plan can be devastating for those who depend on you,” she says. “Estate planning isn’t just about passing on wealth – it’s about protecting your loved ones and ensuring a smooth transition for future generations.”
South African law under the Wills Act is unforgiving. If a will is unsigned, improperly witnessed or vaguely worded, it may be invalid – triggering intestate succession and outcomes far removed from your intentions.
No cookie-cutters here
DIY templates rarely account for offshore assets, trusts, business succession or liquidity needs. One misstep can lead to delays, legal challenges or financial losses – especially when assets like property or offshore holdings are involved. Tax pitfalls are common and insufficient liquidity in the estate (to cover estate expenses and taxes) can force hasty asset sales.
“No two estates are the same, and a cookie-cutter approach can leave critical gaps,” Steenkamp writes in her latest article for Sanlam Private Wealth.
The emotional impact can be greater, she notes. When heirs feel they were excluded or decisions were unclear, even legally sound wills can trigger resentment or disputes.
While these issues affect all families, they can be especially acute for high-net-worth households. Kirsten Smit, an advisory partner at Citadel, adds that loss often comes later.
A 20-year study conducted by The Williams Group, covering more than 3,200 wealthy families, found that 70% of family wealth is lost by the second generation, and a staggering 90% by the third generation.
That erosion is rarely market-driven, Smit says; it stems from poor planning, inadequate communication, and heirs ill-prepared to manage inherited wealth.
Citadel’s experience shows that successful multigenerational wealth transfer extends beyond documents – it requires storytelling, shared values, early inclusion of younger family members, and governance structures like family constitutions and regular meetings. This ensures that legacy survives not just in money, but in vision and purpose.
There are many other things to consider as well: safeguards for minor children, such as a testamentary trust and reliable trustees, says Sanlam Private Wealth’s Steenkamp. No-one ever wants to think of the reality that they’ll be leaving loved ones behind one day.
Estate planning should not be reduced to ticking boxes – it’s a values-driven process. Done well, it ensures orderly succession, preserves financial value and nurtures family harmony. Done poorly, it leaves heirs with confusion – and no legacy.
Top image: Rawpixel/Currency collage.
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